In a turbulent market environment, ModivCare Inc. (MODV) stock has reached its 52-week low, trading at $10.9. With a market capitalization of $163 million and annual revenue of $2.79 billion, InvestingPro analysis indicates the stock is currently trading below its Fair Value. This significant downturn reflects a broader trend of investor caution, as the company navigates through a challenging economic landscape. Over the past year, ModivCare, formerly known as The Providence Service Corporation, has seen its stock value plummet, with a staggering 1-year change of -71.96%. Despite the current challenges, analyst price targets range from $18 to $42, and InvestingPro has identified multiple promising indicators, including oversold conditions and expected net income growth. This sharp decline has raised concerns among shareholders and market analysts alike, as they watch closely for the company’s next moves in an attempt to recover and stabilize its market position.
In other recent news, ModivCare Inc. has announced changes to its board of directors, with Leslie V. Norwalk stepping in as the Interim Chair. This follows the resignation of board members Christopher S. Shackelton and Rahul Samant, a decision not motivated by disagreements with company practices or policies. In financial developments, ModivCare reported third-quarter revenue of $702 million and an adjusted EBITDA of $43 million, in line with market expectations. Despite a net loss of $27 million, the company revised its 2024 adjusted EBITDA guidance to between $170 million and $180 million. The company’s Personal Care Services segment grew by 5%, with operational improvements in the Non-Emergency Medical (TASE:PMCN) Transportation segment. Looking into the future, ModivCare projects a 10% increase in adjusted EBITDA for 2025, driven by membership growth and new contracts. The company is also managing a contract receivable balance of $110 million and working on amending its credit agreement.
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